Satisfactory  Salaries 
How  to  Get  Them 


UCSB  LIBRARY 
Y-<3&04^ 

Walton  School  of  Accountancy 


FACULTY 

SEYMOUR  WALTON,  A.B.,  C.P.A. ,  Dean 

Professor  of  Theory  and  Practice  of  Accounting  in  two  of  the  well  known 
Universities  in  the  Middle  West;   Member  of  firm  of  Walton. 
Joplin,  Langer  A  Co.,  Certified  Public  Accountants; 
Fellow  of  the  Illinois  Society  of  Certified 
Public  Accountants,  and  Ameri- 
can Association  of  Public 
Accountants. 

CHARLES  H.  LANCER,  C.P.A. 

Lecturer  in  Accounting  in  two  of  the  well  known  Universities  in  the 
Middle  West;   Member  of  firm  of  Walton.  Joplin.  Lancer  4 
Co.,  Certified  Public  Accountants;   Fellow  of  the 
Illinois  Society  of  Certified  Public  Account- 
ants, and  American  Association  of 
Public  Accountants. 

ALFRED  WILLIAM  BAYS,  B.S.,  LL.B. 

Professor  of  Commercial  Law  and  Lecturer  in  one  of  largest 

Universities  in  the  United  States;   Member  of  firm 

of  Thompson  4  Bays.  Attorneys  at  Law; 

Member  Chicago  Bar. 

OFFICERS 

J.  PoRTBR  JOPLIN,  C.  P.  A.,  President 

CHARLES  H.  LANGER.  C.  P.  A..  Viet  fret,  and  Treat. 

DAVID  J.  LEVI,  C.  P.  A..  Secretary 

ADVISORY  BOARD 

JOHN  ALEXANDER  COOPER.  C.  P.  A. 
Of  John  Alexander  Cooper  4  Co.,  Certified  Public  Accountants 

J.  PORTER  JOPLIN.  C.  P.  A. 

Of  Walton.  Joplin,  Langer  4  Co  .   Certified  Public  Accountants 

HON.  ROBERT  McMuRDY,  LL.B..  LL.M. 

Of  Church  4  McMurdy,  Attorneys 

H.  G.  PHILLIPPS,  C.  P.  A. 

Auditor  American  Bottle  Co.,  Chicago 

SBYMOVH  WALTON,  A.  B.,  C.  P.  A.,  Dtan 


122  So.  Michigan  Boulevard 
Chicago 


Copyright  1911 
By  Walton  School  of  Accountancy 


Foreword 

The  things  discussed  in  this  book  are 
of  importance  to  every  man  in  business. 

Especially  are  they  good  for  the  clerk 
who  wants  to  rise  to  an  office  position,  and 
the  office  man  who  wants  to  make  more 
money  and  possibly  to  be  taken  into  the 
firm,  or  enter  the  accounting  profession, 
and  the  head  of  a  business  who  wants  to 
know  that  his  employees  are  giving  him 
the  best  service  and  that  his  business  is 
in  good  shape  to  run  economically. 

There's  some  part  of  this  book  that 
fits  your  case. 

You'll  find  it  by  looking  and  when 
you  find  it,  you'll  be  helped  by  acting 
on  what  you  see  there. 


To  the  men  on  salaries 

There  are  tens  of  thousands  of 
industrious,  capable  men,  full  of  ambition 
and  energy,  who  are  tied  to  positions  far 
beneath  their  real  capacity.  They  do 
not  get  away  from  these  restricting  and 
poorly  paid  positions  for  several  reasons; 
first  of  these  is  usually  the  financial  one; 
they  can't  afford  to  take  a  chance; 
another  reason  is  that  their  very  energy 
and  conscientious  application  to  their 
work  absorbs  their  time  and  they  see  no 
openings  into  larger  fields. 

To  the  ambitious  and  brave  hearted, 
an  opportunity  to  reach  independence 
through  one's  own  efforts  without  inter- 
fering with  daily  tasks  and  to  be  sure 
that  this  independence  will  come  quickly 
and  surely  is  the  most  welcome  of  all 
thoughts. 

You  have  a  chance  to  make  good 


quietly  and  safely;  to  be  sure  of  the  one 
thing  before  letting  go  the  other,  to  rise 
exactly  in  proportion  to  your  energy 
and  intelligence;  to  rise  as  you  work. 

Read  this  book  and  see  why  and  how 
this  is  all  true. 


DID  you  ever  stop  to  consider  the 
difference  between   a   bookkeeper 
and  an  accountant? 

There's  about  the  same  difference  that 
there  is  between  a  storekeeper  and  a 
merchant. 

Bookkeepers  and  accountants  start  at 
about  the  same  place;  it's  where  they  go 
that  makes  the  difference. 

This  is  not  merely  playing  on  words, 
it's  a  real,  an  important  matter  that 
should  be  considered  by  the  man  at  the 
desk  who  wants  to  rise. 

There  are  a  great  many  bookkeepers 
who  will  remain  bookkeepers  and  noth- 
ing more;  but  the  majority  of  office  men, 
the  men  who  are  taken,  more  or  less, 
into  the  confidence  of  the  heads  of  the 
concern,  have  it  in  them  to  rise  to  part- 
nerships or  to  businesses  of  their  own. 

It  depends  on  the  broadness  of  their 
view. 


If  you  are  keeping  books  and  want 
to  rise  beyond  your  present  work  and 
salary,  all  you  need  is  to  broaden  your 
view;  become  an  accountant;  instead  ot 
merely  doing  a  grind  that  is  set  before 
you,  qualify  yourself  to  give  opinions 
that  will  carry  weight  with  your 
employers. 

You  may  now  be  able  to  foot  up  a 
column  of  figures  in  record  time,  or  to 
take  off  trial  balances  without  an  error, 
month  after  month,  or  you  may  be 
noted  for  the  promptness  with  which 
you  get  out  your  monthly  statements 
and  make  remittances.  All  of  these  are 
good  things,  but  they  aren't  the  things 
that  make  you  indispensable.  Such  ab- 
ility is  skill,  it  isn't  knowledge. 

To  be  able  to  devise  systems^  of  keep- 
ing^records,  to  suggest  some  valuable 
check  ^against  waste,  to  advise  against  a 
step^because  of  the  law;  sucjh  things  are 
the  things_that  lead  Jo_qujck  advance- 
ment. 


There  are  two  ways  to  acquire  the 
knowledge  that  will  enable  you  to  do 
these  things.  One  is  through  the  long 
road  of  life's  experience,  where  all  that 
you  learn  is  sifted  from  great  masses  of 
irrelevant  and  unimportant  stuff — this 
method  sometimes  benefits  the  old  man 
but  never  the  young  one.  The  other 
method  is  to  learn  accounting,  com- 
mercial law  and  business  systems  and 
methods  from  men  who  make  a  business 
of  teaching  such  things. 

With  such  an  education  your  earning 
power  as  an  expert  accountant  is  many 
times  greater  than  that  of  the  ordinary 
bookkeeper. 

You  can  learn  all  of  this  while  you 
continue  with  your  present  work  and  at 
a  small  expense. 

You  know,  of  course,  that  such  insti- 
tutions as  the  University  of  Chicago  and 
some  other  universities  have  proven  that 
correspondence  methods  in  educational 


work  are  not  only  equal  to,  but  in  many 
cases  are  far  superior  to  oral  methods. 
You  will  find  further  on  in  this  book  a 
summary  of  some  of  the  things  you 
should  know,  not  only  should  know  but 
should  be  very  familiar  with. 

To  know  them  means  th  a  t  _yp  ur 
opinion  wj]l_be_^Qjighti_y^jjr^.idyice  wTill 
bejieeded,  yourJinpQrtance  as  a  business 
man  will  be  increased  and  your  services 
will  be  jn  demand  at  a  decided^  increase 
own  house_or_with 


another. 

This  is  the  inevitable  result  and  it's 
the  result  you  are  seeking;  it's  the  thing 
every  wide  awake,  progressive  money- 
making  employee  wants. 

The  way  to  get  it  is  to  take  a  course 
in  accounting  and  commercial  law  by 
correspondence  in  the  Walton  School 
of  Accountancy. 

The  cost  is  small,  the   time   required 
10 


can  easily  be  given  by  almost  every 
bookkeeper  or  clerk,  and  the  returns  are 
tremendous. 

Our  methods  with  our  students  are 
helpful  methods.  We  do  not  require 
the^full  subscription  to  be  made  in 
advance;  we  give  a  full  equivalent  for 
every  dollar^gaid  us  and  if,  through 
sickness  or  other  misfortune,  a  pupil 
must  discontinue  his  course  of  study,  w<e 
do  not  forfeit  the  unearned  jjartjof  his 
tuiton^  but  return  it  to  him. 

Our  instructors  are  practical  business 
men,  who  know  the  affairs  of  the  modern 
business  houses,  of  individuals,  partner- 
ships, corporations  and  everything 
affecting  them;  they  are  men  who  are 
recognized  by  the  great  universities  as 
experienced  and  expert  teachers;  in  fact 
they  are  a  part  of  two  of  the  great  uni- 
versities in  the  middle  West. 

The    value    of  this  c^mbinatiQii__Qf 
talents  can't  be  top  strpnglyiemphasized; 
n 


it  is  one  of  the  rare  things  found  in  the 
educational^world — practicaj^business 
Knowledge  combined  with  jthc_import- 
antthing JDI£ skill  in  transmitting_jhis 
TEnowledge  j)y_tcachmg. 

There  are  plenty  of  highly  expert 
accountants  and  there  are  plenty  of 
capable  teachers,  but  the  two  combined 
is  almost  never  found. 

This  is  the  thing  that  puts  the  school 
in  a  class  by  itself — away  ahead  of  all 
others. 

The  instructions  are  given  you  by 
these  men  personally  and  not  by  some 
subordinate,  as  is  usually  done  in  cor- 
respondence schools;  they  personally  do 
the  teaching,  they  do  it  with  the  deter- 
mination to  make  a  success  for  you  and 
through  your  success  a  still  greater  name 
for  their  school,  which  is  already  recog- 
nized as  the  best  in  the  country. 

This  personal  superintendence  of  your 

12 


individual  work  makes  it  possible  for 
you  to  progress  rapidly  or  slowly  accord- 
ing to  your  individual  needs  and  ability. 
You  are  practically  in  a  class  by  yourself, 
being  taught  by  the  best  and  most  ex- 
perienced teachers  in  the  country;  they 
are  aiming  at  your  advancement  and 
with  proper  work  on  your  part  it  is  sure 
to  come. 

Through  the  courses  taught  by  the 
Walton  School  of  Accountancy,  you  can 
reach  a  position  where  your  services  as 
an  expert  a.ccountant  will  be  soughtjand^ 
well  paid  jbr.  In  such  work  it  is  not 
infrequent  that  the  accountant^  is  recog- 
nized  by  those  forjwhorn  he  is  working 
as  the  very 


lucrative  position. 

You  can  get  the  particulars  of  such 
cases  from  us  by  asking  for  them. 

The  lessons^  of  this  school  are  pre- 
pared on  loose  leaves,  jwhich  are  easily 
handled  and  which  finally  constitutes  a 

13 


text  book  far  superior  to  any  book  now 
published.  We  supply  a  binder  to  hold 
the  lessons.  This  loose  leaf  system 
makes  it  easy  for  the  instructors  to  make 
changes  in  lessons  where  experience 
shows  that  such  changes  are  desirable; 
this  is  not  true  of  courses  conducted  by 
the  aid  of  regularly  bound  text  books. 

The  following  pages  give  you  an  out- 
line of  the  various  steps  in  the  course. 
Read  them  over  and  see  how  much 
there  is  of  great  interest  to  you  and  to 
your  future  business  career. 


14 


Course  in  General  Accounting 

PLAN  OF  In  this  course  it  is  intended  to 

INSTRUCTION  trace  the  operations  of  a  business 
through  all  its  ramifications,  be- 
ginning with  the  example  of  one  proprietor  keeping 
a  single  entry  set  of  books.  These  will  be  de- 
scribed and  illustrated,  and  the  advantages  and 
disadvantages  of  this  method  will  be  developed. 
The  student  will  then  be  shown  how  to  change 
single  entry  to  double  entry  with  one  proprietor, 
and  will  be  given  practical  lessons  in  double  entry 
bookkeeping.  A  partner  will  then  be  taken  in 
and  the  changes  in  the  accounts  necessitated 
thereby,  and  the  different  problems  caused  by  the 
carrying  out  of  the  partnership  articles,  in  the 
adjustment  of  the  partners'  accounts  will  be 
illustrated.  The  partnership  will  then  be  changed 
to  an  incorporated  company,  the  partnership 
books  closed  out  and  the  company  books  opened. 
The  company  will  afterwards  merge  with  another, 
bringing  in  the  problems  in  connection  with  good 
will,  and  the  issue  of  preferred  and  common  stock. 

The  partnership  accounts  will  be  ended  in 
three  ways:  liquidation  as  solvent,  liquidation  as 
insolvent,  and  the  transfer  to  the  corporation. 
The  company  accounts  will  involve  the  questions 
of  the  issue  of  stocks  and  bonds,  the  establishment 
of  a  sinking  fund,  the  payment  of  dividends,  and 
all  the  various  problems  that  arise  in  the  practical 
management  of  a  corporation. 

The  entire  set  will  form  one  harmonious  whole, 
treating  of  actual  business  transactions  arising  in 
various  mercantile  and  manufacturing  companies. 

15 


The  preparation  of  statements  showing  the 
operating  and  financial  conditions  will  be  taken 
up  in  all  their  details  and  the  transactions  to  be 
recorded  will  be  sufficiently  varied  to  bring  out 
the  principles  of  accounting.  Lectures  given  with 
each  lesson  bear  directly  upon  the  work  in  hand 
and  explain  the  principles  involved  and  their 
application. 

A  number  of  problems  and  quiz  questions  will 
be  given  throughout  the  course  illustrating 
accounting  principles.  To  these  the  student  is 
required  to  send  in  answers,  which  will  be  crit- 
icised and  returned  to  him  together  with  the 
correct  answers. 


General  Accounting — Synopsis 
of  Chapters 

The  lectures  furnished  in  this  course  are 
designed  to  take  the  place  of  text  books,  and 
cover  fully  the  subjects  outlined  in  the  synopsis. 

In  this  course  the  practical  work  will  consist 
of  a  graded  set  of  practice  books,  commencing 
with  the  single  entry  through  to  the  corporation's 
books.  A  diary  of  events  showing  the  details  of 
the  transactions  to  be  recorded  on  the  books  will 
be  furnished  the  student,  together  with  the  nec- 
essary loose  leaf  forms.  The  student  is  expected 
to  record  the  transactions  contained  in  the  diaries 
on  the  books  and  send  them  to  the  School  for 
correction.  They  will  be  returned  to  the  student 
with  a  personal  letter,  if  there  are  any  correc- 
tions to  be  made,  explaining  why  his  treatment 
of  the  accounts  is  wrong.  Any  further  inquiry 
in  regard  to  the  lesson  will  be  promptly  answered. 

16 


CHAPTER  I.  Single  Entry  Bookkeeping.  Open- 
ing of  books.  Books  used:  Day  Book,  Cash 
Book,  etc.  Accounts  usually  kept,  transactions 
involving  Cash  and  Credit  Purchases  and  Sales. 
Postings  to  the  Ledger — what  items  posted. 
Inadequacy  of  Single  Entry  method. 

CHAPTER  2.  Method  of  determining  Profits  in 
Single  Entry  books.  Books  and  other  sources  to 
be  used  in  connection  therewith.  Inventories  and 
accounts  not  stated  on  the  books.  Drawings  as  a 
factor  in  ascertaining  profits. 

CHAPTER  3.  Transfer  of  Single  Entry  to 
Double  Entry.  Opening  Entries;  items  to  be 
posted.  Principles  of  Double  Entry  Bookkeeping. 
Rules  for  journalizing.  Description  and  use  of 
Cash  Book,  Journal  and  Ledger.  Practical  sug- 
gestions. 

CHAPTER  4.  Classes  of  accounts  necessitated 
by  Double  Entry.  Real  and  Nominal.  Division 
of  Real  and  Nominal  accounts  into  Personal  and 
Impersonal;  Importance  of  distinction  between 
Real  and  Nominal  accounts.  Merchandise  Ac- 
count, how  often  used;  correct  method  of  treating 
Purchases  and  Sales,  and  Return  Goods  in  each. 

CHAPTER  5.  Expense  Accounts,  value  of  detail 
classification.  Investment  or  Capital  Expendi- 
ture defined.  Revenue  and  Expense  items  defined. 
Importance  of  distinction  between  these  classes 
of  accounts.  Effect  of  wrong  classification  upon 
the  revenue. 

CHAPTER  6.  Posting  to  Ledger  from  books  of 
original  entry.  Different  forms  of  ledger  rulings. 

17 

(General  Accounting — Continued) 


Closing  of  Cash  Book.  Trial  Balance,  definition 
of;  how  to  take  off;  double  and  balance  method. 
Locating  errors. 

CHAPTER  7.  Admission  of  Partner;  necessity 
of  ascertaining  Present  Worth  by  closing  the 
books.  Necessity  of  taking  Inventories.  Pre- 
paring simple  Profit  and  Loss  Account.  Trans- 
fer of  Profits  and  Drawings  to  Capital  Account. 
Preparation  of  Balance  Sheet.  Definition. 

CHAPTER  8.  Entries  necessary  to  open  Part- 
nership Books.  Articles  of  Partnership.  Divi- 
sion of  Profits.  Interest  on  Partners'  Capital. 
Object  of.  Drawing  Accounts.  Interest  on 
Drawings. 

CHAPTER  9.  Introduction  of  Sales  Book,  Pur- 
chase Register,  Columnar  Journal  and  Cash  Book. 
Opening  Bank  Account;  different  methods  of 
treatment  in  the  accounts.  Safeguarding  the 
receipts  of  cash.  All  receipts  to  be  deposited; 
all  payments  to  be  made  by  check. 

CHAPTER  10.  Trade  and  Cash  Discounts,  dis- 
tinction between.  Cash  Discounts  in  the  Cash 
Book,  different  methods  of  handling.  The  Petty 
Cash.  The  "Imprest  System"  described  and 
illustrated.  The  Working  Fund.  Distinction  be- 
tween it  and  Petty  Cash. 

CHAPTER  n.  Notes  Receivable.  Methods  of 
registering  those  received.  Methods  of  keeping 
the  Ledger  Account.  Notes  discounted  or  trans- 
ferred to  creditors.  Contingent  Liability  on 
Notes  discounted.  Treatment  of  dishonored 
Notes.  Notes  Payable. 

CHAPTER  12.     Controlling   Accounts,    defined, 
how  constructed,  advantages  of  keeping.     Sub- 
is 

(General  Accounting — Continued) 


sidiary  Ledgers,  their  relation  to  the  General  Led- 
ger; Trial  Balances  of  Subsidiary  Ledger.  The 
Adjustment  Account. 

CHAPTER  13.  Consignment  Sales  and  Pur- 
chases, how  treated  in  the  accounts  and  inven- 
tories. Expenses  in  connection  therewith.  Ap- 
proval Sales,  how  treated.  Joint  Ventures, method 
of  keeping  account  and  determining  Profit  or 
Loss. 

CHAPTER  14.  Loans  from  Partners;  relation  of 
Interest  on  Partner's  Loans  to  Operating  Profits. 
Relation  of  Interest  on  Partners'  Capital  to 
Operating  Profits.  Partners'  Loan  in  the  Balance 
Sheet.  Status  of  Loan  in  Liquidation. 

CHAPTER  15.  Averaging  accounts.  Proper 
method  of  calculating  Interest  on  Partial  Pay- 
ments. Account  Current,  dealing  with  the  treat- 
ment of  Interest,  Advances,  and  Adjustments. 

CHAPTER  16.  Closing  Partnership  books.  In- 
ventories, correct  valuation.  Omission  of  pur- 
chases not  entered  on  books.  Method  of  treating 
Inventory  on  the  books.  Journal  entries  to  close 
books.  Disposition  of  Profits.  Closing  of  Draw- 
ing Accounts.  Preparation  of  Balance  Sheet. 

CHAPTER  17.  Liquidating  the  Partnership  by 
agreement,  when  solvent.  Order  of  distribution 
of  Assets,  as  to  Creditors,  Partners'  Loans  and 
Capital.  Expense  and  Losses  of  Liquidation, 
how  divided  among  Partners. 

CHAPTER  18.  Dissolution  of  Partnership  by 
assignment.  Statement  of  Affairs  and  Deficiency 
Account.  Definition  and  preparation  of,  and 
relationship  between  them. 

19 

(General  Accounting — Continued) 


CHAPTER  19.  Realization  and  Liquidation  ac- 
count, definition  of.  Statement  of  Affairs  as  a 
basis.  Adjustment  of  Partner's  Capital  to  Profit 
sharing  ratio  in  distribution  of  Assets. 

CHAPTER  20.  Change  of  Partnership  to  Cor- 
poration. Entries  to  close  Partnership  Books. 
Different  methods.  Advantages  of  incorporating. 

CHAPTER  21.  Opening  Entries  of  Corporation 
Books.  The  Balance  Account  method  discussed. 
Subscription  to  Capital  Stock.  Payment  of 
Subscriptions.  The  Stock  Ledger.  Transfer  of 
Shares. 

CHAPTER  22.  Acquisition  of  Land  and  Build- 
ings; Part  Cash  and  Mortgage.  Donated  Real 
Estate.  Purchase  of  Machinery,  Tools  and 
Equipment.  Expense  of  Installation  as  an  Asset. 
Repairs  and  Replacements,  how  treated. 

CHAPTER  23.  Introduction  of  Manufacturing 
Department.  Change  of  method  of  keeping  books 
by  reason  of  additional  activities.  Additional 
accounts  necessitated.  Voucher  Record  and 
Voucher  Check,  form  and  use,  relation  between 
them. 

CHAPTER  24.  Pay-roll.  Productive  or  Direct 
Labor.  Non-productive  or  Indirect  Labor;  classes 
of  labor  belonging  under  each  heading.  Manu- 
facturing and  Factory  Expense;  classes  of  accounts 
under  each  heading. 

CHAPTER  25.  Opening  a  Branch.  Treatment 
of  Branch  accounts  and  inventories.  Difference 
between  Branches  and  Selling  Agencies. 

CHAPTER  26.  Acquiring  a  Patent.  Cost  of 
defending  it  and  of  prosecuting  infringements. 
Treatment  in  the  accounts.  Elements  diminish- 
ing value. 

20 
(General  A  ccounling — Continued) 


CHAPTER  27.  Depreciation,  causes  of.  Ne- 
cessity for  provision  against.  Different  methods 
of  expressing.  Basis  of  calculation.  Sale  of 
Depreciated  Asset,  how  treated. 

CHAPTER  28.  Closing  Books  of  Corporation. 
Deferred  Charges;  Accrued  Income  not  due; 
Deferred  Credits;  Accrued  Liabilities  not  due; 
definition  and  treatment  of.  Reserve  for  bad  and 
doubtful  accounts. 

CHAPTER  29.  Revenue  Account.  Division  in- 
to tables.  Manufacturing,  Selling  or  Trading, 
and  Profit  and  Loss  Account.  Disposition  of 
Profit.  Relation  of  Surplus  to  Capital  Stock. 

CHAPTER  30.  Declaration  of  Dividend;  treat- 
ment in  the  accounts  and  method  of  payment. 
Fire  Loss;  treatment  in  the  accounts,  settlement 
with  the  Insurance  Companies,  disposition  of 
Loss. 

CHAPTER  31.  Treasury  Stock,  definition  of, 
how  acquired,  treatment  in  the  accounts.  Do- 
nated Working  Capital,  treatment  and  final 
disposition  of. 

CHAPTER  32.  Preferred  Stock,  various  classes 
discussed.  Treatment  in  the  accounts.  Accom- 
modation Paper. 

CHAPTER  33.  Purchase  of  additional  plant. 
Option  to  purchase  for  Cash  or  Bonds.  Issue  of 
Bonds  in  payment.  Discount  on  Bonds,  treat- 
ment of. 

CHAPTER  34.  Sinking  Fund.  Method  of  es- 
tablishing. Accounts  with  the  Trustee  in  con- 
nection therewith.  Treatment  of  Interest  on 
Sinking  Fund  Securities. 

21 

(General  Accounting — Continued) 


CHAPTER  35.  Complications  arising  in  closing 
Corporation  Books.  Their  effect  on  the  Revenue 
Account  and  Balance  Sheet.  Correcting  errors  in 
previous  closings,  proper  methods  of  taking  In- 
ventory. Perpetual  Inventory. 

CHAPTER  36.  Real  Estate  Income  and  Ex- 
pense. Earnings  from  Outside  Investments. 
Nature  of  Interest.  Extraneous  or  extraordinary 
Profits  and  Losses.  Wasting  Assets.  Valuation 
of  Machinery  manufactured  by  a  Factory  for  its 
Own  Use. 

CHAPTER  37.  Private  Ledger  and  Journal. 
Object  and  Method  of  Keeping  Suspense  Ac- 
counts, their  treatment.  Suspense  Ledger.  For- 
eign Exchange  Accounts,  methods  of  keeping. 

CHAPTER  38.  Statement  of  Receipts  and  Dis- 
bursements; of  Income  and  Expense,  difference 
between.  Vouchers,  what  constitute.  Numbered 
Accounts. 

CHAPTER  39.  Difference  between  liquidating 
Corporations  and  Partnerships,  whether  Solvent 
or  Insolvent.  Status  of  debts  due  to  Officers  and 
Stockholders.  Liquidating  Dividends.  Disposi- 
tion of  eventual  Surplus  or  Deficit. 

CHAPTER  40.  Consolidation  with  two  other 
companies.  Distribution  of  Preferred  and  Com- 
mon Stock  of  merger  company  on  the  basis  of 
Net  Assets  and  Goodwill.  Closing  Books  of 
Corporation. 


22 
(General  Accounting — Continued) 


Course  in  Advanced  Accounting 

PLAN  OF  The  students  in  this  course  are  ex- 

INSTRUCTION     pected  to  be  familiar  with  general 

bookkeeping  methods. 

The  topics  will  be  treated  in  detail  in  all  their 
bearings  pertaining  to  Practical  Accounting, 
Theory  and  Auditing,  as  an  exhaustive  treatment 
of  any  accounting  topic  must  of  necessity  include 
the  different  phases  of  it. 

There  will  be  sent  to  the  student,  with  each 
lesson,  two  practical  problems  and  five  questions 
in  Theory  and  Auditing  involving  the  principles 
treated  of  in  the  lesson.  The  answers  will  be 
personally  examined  and  corrected  by  the  dean 
and  returned  together  with  an  individual  letter 
when  necessary,  giving  the  reasons  for  the  criti- 
cisms. 

This  individual  treatment  makes  this  course 
of  great  value,  and  it  solves  all  questions  that 
come  up  in  practical  work  of  Certified  Public  Ac- 
countants. 

Advanced  Accounting — Synopsis 
of  Lessons 

CHAPTER  I.  The  C.  P.  A.  Certificate  and  the 
advantages  of  possessing  it.  Accounting  educa- 
tion and  mental  qualities  necessary  to  obtain  it. 
Importance  of  the  analytical  faculty  and  imagi- 
nation. The  Bookkeeper  and  the  Accountant. 
Single  Entry,  its  principles  and  methods,  includ- 
ing ascertainment  of  profits.  Advantageous  use 
by  Executors,  Assignees,  Receivers  and  Real 
Estate  Agents. 

23 


CHAPTER  2.  Double  Entry,  its  principles  and 
methods.  The  Journal  as  the  fundamental  idea. 
Every  entry  a  Journal  entry.  Usual  rules  given 
for  journalizing.  Analysis  of  Debit  and  Credit 
with  simple  rule  for  journalizing.  Changing 
Single  to  Double  Entry  and  opening  Double 
Entry  Books.  The  Ledger  and  its  position  in  the 
accounts.  The  Controlling  Account,  its  advan- 
tages and  treatment. 

CHAPTER  3.  Individual  Proprietorship.  For- 
mation of  Partnership.  Principles  involved  in 
the  division  of  Profits  between  Partners.  Ad- 
mitting a  new  Partner .  Buying  out  a  Partner . 
Liquidating  a  Partnership  as  Solvent  and  as  Insol- 
vent. The  Statement  of  Affairs.  Status  of  loans 
from  Partners  in  liquidation.  Transfer  of  a  Part- 
nership to  a  Corporation.  Closing  the  Partnership 
books. 

CHAPTER  4.  The  Incorporated  Company.  Ad- 
vantages and  disadvantages  of  incorporating. 
Various  methods  of  opening  Corporation  Books. 
Capital  Stock,  Subscription  and  Issue.  Classes 
of  Stock.  The  Stock  Ledger  and  method  of 
keeping  it. 

CHAPTER  5.  Treasury  Stock.  Definition. 
Wrong  uses  of  the  term.  Donated  Stock  and 
what  credit  account  should  offset  it.  Donated 
Working  Capital,  treatment  and  final  disposition. 
Stock  issued  for  Property,  when  full-paid  and 
when  not.  Treatment  of  Premium  or  Discount 
on  Stock  sold. 

CHAPTER  6.  Revenue  Account,  necessity  of 
understanding  it  as  being  objective  point  of  all 
operations.  Its  object  and  form.  Reasons  for 
dividing  it  into  tables.  Statements  preceding 

24 
(Advanced  Accounting — Continued) 


and  following  it;  the  Trial  Balance,  Balance  Sheet 
and  other  statements  defined  and  distinguished. 
Form  of  the  Balance  Sheet.  Fixed  and  Floating 
Assets  and  Liabilities  analyzed  and  defined. 

CHAPTER  7.  Assets.  Real  Estate,  treatment 
of  increase  in  market  value.  Donated  Real  Es- 
tate. Buildings,  what  constitutes  cost.  Build- 
ing Maintenance  and  Expense,  how  treated. 
Machinery  and  Tools.  Elements  of  cost,  when 
bought  outside  and  when  made  in  the  factory 
itself. 

CHAPTER  8.  Depreciation.  General  princi- 
ples governing  it.  Distinction  between  Depre- 
ciation and  Fluctuation.  Causes  of  Deprecia- 
tion. Factors  determining  the  amount.  Methods 
of  charging.  Treatment  in  the  accounts. 

CHAPTER  9.  Raw  Material.  Elements  of 
Cost.  Valuation  in  Inventory  at  cost  or  market 
value.  The  Purchase  Register.  Different  meth- 
ods of  recording  purchases  and  keeping 
accounts  with  creditors.  Product  in  Process  and 
Finished,  how  valued  in  Inventory. 

CHAPTER  10.  Accounts  Receivable.  Abuse  of 
the  term.  Auditing  as  to  valuation,  proof  of 
amounts  and  establishment  of  Suspense  accounts 
and  Reserve.  Notes  Receivable.  How  regis- 
tered. Notes  Discounted.  Difference  between 
British  and  American  business  methods. 

CHAPTER  ii.  Cash.  Safeguarding  receipts  by 
internal  checks.  Futility  of  methods  usually  re- 
lied on.  Petty  Cash  Fund,  how  established  and 
treated.  Vouchers  for  credits  and  payments. 
Pay-rolls.  Auditing  vouchers  and  pay-rolls. 
The  Cash  Book.  Columnar  Books.  Cash  Jour- 
nals. 

25 
(Advanced  Accounting — Continued) 


CHAPTER  12.  Patents,  how  valued  originally 
and  from  year  to  year.  Patterns,  their  valuation 
and  depreciation.  Deferred  Charges  and  Credits, 
how  carried  on  books  at  closing  period. 

CHAPTER  13.  Goodwill;  definition;  basis  of 
valuation;  who  can  transfer  it;  when  admissible  in 
the  accounts;  legitimate  and  illegitimate  uses  of 
the  term. 

CHAPTER  14.  Liabilities.  Accounts  Payable- 
Methods  of  registering  them.  Voucher  Systems- 
Notes  Payable.  Auditor's  responsibility  for  lia- 
bilities not  on  the  books. 

CHAPTER  15.  Sales.  Not  to  be  credited  to 
Merchandise  Account.  Methods  of  recording 
and  verifying.  Treatment  of  Consignment  Sales, 
Installment  Sales  and  Branch  Sales,  avoiding 
danger  of  making  false  profits.  Department 
Store  Sales.  Keeping  account  of  Salesmen's 
Commissions  and  "P.  M's." 

CHAPTER  16.  Discounts.  Distinction  between 
Trade  and  Cash  Discounts.  Discussion  of  Cash 
Discount  as  to  whether  it  is  a  reduction  of  price 
or  an  earning  or  expense  of  Capital.  Cash  Dis- 
count in  the  Inventory. 

CHAPTER  17.  Bonds.  Advantage  of  issuing 
them  instead  of  increasing  Capital  Stock.  Classes 
of  Bonds  described.  Accrued  Interest  as  an 
asset  or  liability.  Analysis  of  Premium  or  Dis- 
count of  Bonds,  whether  issued  or  owned,  and 
treatment  in  the  accounts. 

CHAPTER  18.  Sinking  Funds  and  Reserve  Ac- 
counts. Analysis  of  underlying  principles.  Right 
and  wrong  uses  of  terms  in  connection  with  the 
Surplus.  Proper  treatment  in  the  accounts. 

26 
(Advanced  Accounting — Continued) 


CHAPTER  19.  Secret  Reserves.  Definition 
and  methods  of  formation.  Arguments  for  and 
against  them.  Duty  of  the  auditor  in  respect  to 
the  officers,  the  directors  and  the  stockholders. 

CHAPTER  20.  Closing  the  Books.  Original 
and  present  methods.  The  Balance  Account. 
The  Revenue  Account  and  its  division  into  Manu- 
facturing, Trading  or  Selling  and  Profit  and  Loss. 
What  should  determine  the  distribution  of  the 
items.  The  Profit  or  Loss.  How  treated  by 
individual  proprietor,  firm  or  corporation.  The 
Surplus  Account,  elements  constituting  it. 

CHAPTER  21.  What  Constitutes  a  Profit.  Ele- 
ments of  a  real  profit.  Apparent  profits  made  by 
writing  up  assets.  Unscientific  use  of  the  terms 
"Special  Reserve"  and  "Special  Surplus." 

CHAPTER  22.  Capital  Expenditures  and  Reve- 
nue Expenditures.  Principles  involved  in  the 
distinction  between  them.  Basis  of  charges  must 
be  at  cost.  Partial  and  entire  Replacements  in 
connection  with  Depreciation  Reserves.  Treat- 
ment of  Fire  Losses,  and  the  profit  or  loss  on  set- 
tlements. 

CHAPTER  23.  Inventories  and  other  assets  in 
relation  to  the  Revenue  Account.  Dividends, 
Preferred  and  Common;  who  have  the  right  to 
declare.  Liability  for  illegal  dividends.  Accrued 
Preferred  Dividends,  when  a  liability.  Scrip  and 
Stock  Dividends.  Legal  and  accounting  princi- 
ples involved  in  apportionment  of  dividends  be- 
tween Principal  and  Income. 

CHAPTER  24.  Auditing.  Definitions  and  Ob- 
jects. Includes  Investigations.  Duty  and  Re- 
sponsibility of  Auditor  in;  Periodical  Audits; 

27 
(Advanced  Accounting — Continued) 


Investigations  for  client  investing  his  own  money 
for  promoters  or  brokers  offering  stock  for  sale, 
and  for  company  directors  selling  stock  on  the  open 
market.  Continuous  Audits,  mode  of  conducting; 
advantages  and  disadvantages. 

CHAPTER  25.  Conduct  of  an  Audit.  Instruc- 
tions to  assistants.  Verification  of  Postings.  Two 
methods  in  vogue,  checking  the  accounts  or  mak- 
ing an  independent  abstract.  Verification  of  the 
assets. 

CHAPTER  26.  Verifying  the  Receipts  and  Dis- 
bursements. Appraisals  and  the  auditor's  duty 
in  regard  to  them.  The  auditor's  Report  and 
what  it  should  cover.  His  fo  mal  Certificate. 
Attitude  of  the  auditor  to  the  client  and  his  office 
force. 

CHAPTER  27.  The  Stock  Exchange  and  Board 
of  Trade.  Cash  trades  and  how  they  are  treated. 
Future  sales  analyzed  and  discussed.  Methods 
of  keeping  the  accounts  of  brokers.  Settling 
Clerks  on  the  Board  of  Trade  and  the  use  of  the 
Settling  Price. 

CHAPTER  28.  Insurance  Companies  and 
Agents.  Basis  of  Life  Insurance.  Premiums  and 
so-called  Dividends.  Different  classes  of  Life 
Insurance.  Fire  Insurance.  Accounts  necessary 
for  the  company  to  keep  explained.  Different 
classes  of  Agents,  their  accounts  and  reports  to 
the  company.  Unearned  Premiums,  Legal  Re- 
serve, and  other  elements  of  reports  to  State 
Commissioners. 

CHAPTER  29.  Trustees  and  Executors.  Meth- 
ods of  keeping  their  accounts.  Preparation  of 
reports  to  be  submitted  to  the  Court.  Mines  and 

28 
(Advanced  Accounting — Continued) 


Mining.  What  constitutes  cost  of  Development. 
Donated  Stock.  Reciprocal  accounts  between 
the  mine  and  the  main  office. 

CHAPTER  30.  Consignments.  Their  nature. 
Accounts  as  kept  by  consignor  and  consignee. 
Consigned  goods  in  the  Inventory.  Adventures. 
Joint,  Single  and  Reciprocal  Venture  Accounts. 
Simple  method  of  treating  them.  Agencies  and 
Branches.  Distinction  between  them.  Impor- 
tant points  to  be  observed  in  their  treatment. 

CHAPTER  31.  Municipal  Accounts.  Faults  of 
the  Receipt  and  Disbursement  method.  Busi- 
nesslike methods  described.  The  Budget  as  the 
foundation  of  the  accounts. 

CHAPTER  32.  Breweries.  Peculiarity  of  some 
of  the  accounts.  Necessity  of  keeping  track  of 
output,  packages  and  drivers'  expenses.  Hotels 
and  Restaurants.  Necessity  for  quickly  posting 
individual  accounts,  causing  peculiar  treatment. 

CHAPTER  33.  Clubs.  Necessity  for  the  pay- 
ment of  dues  explained.  Various  methods  of 
carrying  charges  against  members.  Form  of 
annual  statement.  Building  and  Loan  Associa- 
tions. Theory  on  which  founded.  Serial  and 
Individual  Associations.  Failure  of  the  indefinite 
loan  plan  and  advantages  of  the  definite  plan. 

CHAPTER  34.  Public  Service  Corporations. 
Private  and  Public  Ownership.  Gas  Works.  Class- 
ification of  accounts.  Treatment  of  by-products 
in  the  accounts.  Waterworks.  Different  classes 
of  works  require  different  accounts. 

CHAPTER  35.  Electric  Light  and  Power  Com- 
panies. Construction  and  Maintenance  Accounts. 
Method  of  allocating  power  house  expense  when  an 

29 
(Advanced  Accounting — Continued) 


electric  railroad  is  also  run.  Telephone  Com- 
panies. Flat-rate  and  measured  service  custom- 
ers. Reason  for  large  Depreciation  Reserves. 

CHAPTER  36.  Street  and  Interurban  railroads. 
Classification  of  Construction  accounts  and  of 
Operating  Expense.  The  Interstate  Commerce 
Commission  regulations.  Treatment  of  Ticket 
Discount  and  Outstanding  Tickets.  Operating 
Statistics. 

CHAPTER  37.  Steam  Railroads.  Divisions  of 
Construction  and  Operating  Accounts.  Compli- 
cations caused  by  Union  Terminals,  through 
passengers  and  freight  transferred  to  other  roads, 
cars  of  a  special  character,  leased  lines  and  other 
deviations  from  conditions  on  a  single  road  with- 
out connections. 

CHAPTER  38.  Banks  and  Trust  Companies. 
Classes  of  banks.  Limitation  in  character  of 
assets.  Method  of  calculating  National  Bank 
reserves.  Bank  bookkeeping.  Official  examina- 
tions and  proper  audits.  Additional  elements  in 
a  Trust  Company. 

CHAPTER  39.  Contractors.  Accounts  with  the 
Contract,  the  Owner  and  the  Cost  of  Contract. 
Valuation  of  Unfinished  Contracts.  Real  Estate 
Brokers  and  Agents.  Accounts  of  Renting  Agents 
and  of  Sellers  of  lots  on  partial  payments. 

CHAPTER  40.  Mergers  and  Consolidations. 
Bringing  all  the  constituent  concerns  to  the  same 
basis.  Principles  involved  in  allotting  stock  for 
Assets  and  for  Goodwill.  Distinction  between  a 
Merger  and  a  Holding  Company. 


30 
(Advanced  Accounting — Continued) 


Course  in  Commercial  Law 

This  School  recognizes  the  neces- 
PLAN  OF  sity  and  importance  of  a  thorough 

INSTRUCTION    knowledge  of  the  law  pertaining 

to  business. 

Special  lectures  have  been  prepared  for  the 
students'  use  and  cover  fully  the  subjects  outlined. 
The  general  law  is  stated,  conflicting  decisions  by 
dissenting  authorities  are  referred  to,  a  full  dis- 
cussion of  the  law  follows  the  general  state- 
ments, treating  of  the  principles  involved  and 
their  application.  The  reasons  by  which  the  law 
has  come  to  be  so  established  are  also  given  and 
actual  cases  are  quoted  which  have  been  litigated 
in  the  Courts,  together  with  the  decisions.  These 
cases  are  to  be  studied  in  connection  with  the 
lectures. 

The  law  of  the  state  in  which  the  student  re- 
sides is  always  taken  into  consideration. 

Examinations  will  be  conducted  throughout  the 
course  in  the  nature  of  quiz  questions.  The 
papers  sent  in  are  carefully  examined  and  criti- 
cisms noted  thereon  and  returned  to  the  student, 
together  with  the  correct  answers. 

Commercial  Law — Synopsis  of  Lessons 

GENERAL  SURVEY  OF  THE  LAW 

CHAPTER  i.  Law  defined.  International  and 
municipal  law;  the  criminal  and  civil  law;  the 
law  of  contracts  and  of  torts.  The  sources  of 
our  law;  the  common  law;  statutory  law;  the 
federal  and  state  constitutions.  Courts;  those  of 
original  and  appellate  jurisdiction;  the  federal 
and  state  courts. 

31 


CONTRACTS 

CHAPTER  2.  Definitions  and  Divisions.  For- 
mal and  simple  contracts;  unilateral,  bilateral, 
executory,  executed,  express,  implied  contracts; 
how  contract  differs  from  mere  agreement  or  moral 
obligation. 

CHAPTER  3.  Capacity  of  Parties  to  Contract. 
Minors,  who  are;  their  contracts  for  necessaries; 
what  are  necessaries;  who  judges;  contracts  other 
than  for  necessaries;  ratification  or  disaffirmance 
after  age;  deeds  of  minors;  married  women,  their 
incapacities  by  the  common  law,  how  far  removed 
by  statutes;  insane  persons,  drunkards,  corpora- 
tions. 

CHAPTER  4.  The  Form  and  Evidences  of  the 
Contract.  Oral  contracts;  written  contracts; 
what  contracts  law  requires  to  be  in  writing; 
statute  of  frauds;  contracts  of  guaranty  and  surety- 
ship; contracts  in  consideration  of  marriage;  con- 
tracts for  sale  of  lands  or  interests  therein;  con- 
tracts not  to  be  performed  within  a  year;  sales  of 
personal  property;  sealed  contracts;  what  is  a 
seal;  its  effect;  what  contracts  must  be  under 
seal;  implied  contracts. 

CHAPTER  5.  Offer  and  Acceptance.  What 
constitutes;  how  long  offer  remains  open;  when 
acceptance  complete;  who  may  accept  offer;  con- 
tracts made  by  mail  or  telegraph;  withdrawal  of 
offer;  effect  of  death,  insanity,  destruction  of 
subject  matter. 

CHAPTER  6.  Consideration.  Defined;  its 
necessity  and  adequacy;  what  constitutes  consid- 
eration; moral  obligation,  past  mutual  promises, 
compromises,  etc.;  illegal  contracts;  when  illegality 
contemplated  by  one  party  only;  various  sorts  of 
illegal  contracts. 

32 
(Commercial  Law — Continued) 


CHAPTER  7.  Construction  and  Operation  of 
Contracts.  Rules  of  construction;  parole  evi- 
dence rule;  time  of  performance;  liquidated 
damages  and  penalties;  assignment  of  contract; 
right  of  beneficiaries  who  are  not  parties  to  con- 
tract. 

CHAPTER  8.  Discharge  of  Contracts.  By  per- 
formance, by  breach,  by  waiver,  by  impossibility 
of  performance,  etc.;  literal  performance;  rights  of 
one  who  has  only  partially  performed;  rescission 
and  cancellation  of  contracts;  effect  of  fraud, 
mistake  or  duress;  fraud  presumed  in  certain 
cases;  effect  of  delay  in  asserting  right  of  recission. 

NEGOTIABLE   INSTRUMENTS 

CHAPTER  9.  Nature  and  Source  of  Law  of 
Negotiable  Instruments.  Technical  meaning  of 
term  "negotiable;"  history;  the  Uniform  Negoti- 
able Instruments  Act.  Negotiability  of  various 
instruments  considered:  notes,  bills  and  checks, 
certificates  of  deposit,  bonds,  mortgages,  ware- 
house receipts,  bills  of  lading,  stock  certificates. 

CHAPTER  10.  The  Requisites  and  Validity  of 
Negotiable  Instruments.  Promise  or  order  must 
be  unconditional,  must  be  promise  to  pay  at  time 
certain  to  occur,  and  not  upon  contingency. 

CHAPTER  u.  The  Requisites  and  Validity  of 
Negotiable  Instruments  (continued).  Certainty 
of  parties;  instruments  payable  to  bearer;  when 
instruments  considered  payable  to  bearer;  words 
of  negotiability,  whether  necessary,  what  consti- 
tute. Recital  of  value,  whether  necessary;  refer- 
ence to  collateral;  waiver  of  rights;  the  signature; 
the  delivery;  instruments  signed  in  blank. 

33 

(Commercial  Law — Continued) 


CHAPTER  12.  Transfer  and  Rights  of  Trans- 
feree. Negotiation  by  delivery,  when  may  be; 
negotiation  by  endorsement;  kinds  of  endorse- 
ment: blank,  special,  restricted,  qualified,  condi- 
tional, anomalous;  effect  of  negotiation  and  rights 
of  holder;  right  to  collateral;  provisions  in  instru- 
ment regarding  waiver;  confession  of  judgment 
clause,  etc.;  who  is  holder  in  due  course;  when  one 
must  be  such. 

CHAPTER  13.  Transfer  and  Rights  of  Trans- 
feree (continued).  Defenses  to  which  holder  in 
due  course  does  not  take  subject,  and  those  to 
which  he  does:  payment  before  maturity,  want  or 
failure  of  consideration,  set-off,  illegality  of  con- 
sideration, collateral  agreements,  lack  of  authority 
in  partner  or  corporate  officer,  infancy,  forgery, 
fraud  in  execution,  fraud  in  consideration,  duress, 
alteration. 

CHAPTER  14.  Liability  of  Parties.  Maker, 
drawer,  acceptor,  endorser,  surety,  guarantor; 
procedure  necessary  to  fix  liability  of  parties,  to 
charge  parties  primarily  liable,  those  secondarily 
liable;  presentment  for  payment,  notice  of  dis- 
honor; protest;  when  steps  excused,  when  waived. 

CHAPTER  15.  Accommodation  Parties.  Defi- 
nition; purpose  of  accommodation  paper;  rights 
and  liabilities  of  accommodation  parties;  accept- 
ance and  payment  for  honor  or  supra-protest; 
rights  and  liabilities.  Discharge  of  negotiable 
instruments;  the  various  ways  of  discharging  the 
obligation;  force  and  effect  of  discharged  paper. 

SALES  OF  PERSONAL  PROPERTY 

CHAPTER  16.  Definitions;  Subject  Matter  of 
Sale.  Subject  matter  not  yet  in  existence;  crops 

34 
(.Commercial  Law — Continued) 


yet  to  be  raised,  young  to  be  born;  mistake  con- 
cerning or  destruction  of  subject  matter;  formali- 
ties of  contract,  what  sales  must  be  in  writing. 

CHAPTER  17.  Conditions  and  Warranties. 
Defined;  express  warranties,  what  constitutes; 
effect  thereof. 

CHAPTER  18.  Conditions  and  Warranties  (con- 
tinued). Implied  warranties:  those  of  title,  those 
of  quality  and  fitness,  those  contained  in  a  sale 
by  sample,  those  contained  in  a  sale  by  descrip- 
tion. 

CHAPTER  19.  Transfer  of  Title  as  Between 
Parties.  When  title  passes;  tests  and  rules; 
results  of  the  transition  of  title;  transfer  of  title  as 
to  third  parties;  attempted  sale  by  one  not  owner; 
when  real  owner  is  estopped  to  assert  his  title; 
when  not;  effect  where  after  sale  seller  remains  in 
possession;  what  constitutes  change  of  possession. 

CHAPTER  20.  Contractual  Obligations  of  Par- 
ties. In  respect  to  time,  place,  quantity,  etc.; 
acceptance  as  waiver  of  rights. 

CHAPTER  21.  Rights  and  Remedies  upon 
Breach.  Rights  of  seller  against  the  goods;  un- 
paid seller's  lien;  right  of  stoppage  in  transit;  resale 
and  rescission  by  seller;  remedies  of  buyer,  when 
he  may  demand  goods,  when  confined  to  damages. 

PRINCIPAL  AND   AGENT 

CHAPTER  22.  Nature  of  Relation.  Kinds  of 
agents,  general,  special;  particular  classes  of 
agents:  factors,  brokers,  auctioneers,  insurance 
agents,  traveling  salesmen,  agents  del  credere  and 
not  del  credere.  Formation  of  relationship,  the 
contract  or  appointment,  whether  consideration 
necessary,  agency  by  ratification  and  estoppel. 

35 

(Commercial  Law — Continued) 


CHAPTER  23.  Rights  and  Duties  Between 
Principal  and  Agent.  Implied  powers  of  agent; 
duties  of  agent;  good  faith  required;  application  of 
rule;  representing  both  parties  at  once;  right  to 
double  commissions;  right  of  agent  to  buy  of  or 
sell  to  self;  duty  of  principal  to  agent. 

CHAPTER  24.  Rights  and  Duties  Between 
Principal  and  Third  Persons.  Principal  bound 
where  agent  does  not  exceed  apparent  authority; 
what  constitutes  apparent  authority;  undisclosed 
principal,  his  rights  and  liabilities;  when  admis- 
sions of  agent  binding  on  principal;  when  notice 
to  agent  is  notice  to  principal. 

CHAPTER  25.  Rights  and  Duties  Between  Agent 
and  Third  Persons.  When  agent  liable  to  third 
person;  when  he  warrants  his  authority;  torts  of 
agent;  termination  of  relation,  by  agreement, 
revocation,  renunciation,  death,  insanity;  when 
agency  irrevocable. 

PARTNERSHIPS 

CHAPTER  26.  Definitions,  Essential  Elements. 
The  assent;  profit-sharing;  mutual  ownership  and 
agency;  the  intent  and  how  evidenced.  Status 
of  partnership  before  the  law;  kinds  of  partner- 
ships and  partners;  who  may  be  partners;  minors, 
married  women,  corporations. 

CHAPTER  27.  The  form  of  the  Agreement. 
Whether  writing  necessary;  articles  of  partner- 
ship, what  they  should  contain,  their  effect;  the 
consideration;  the  firm  property,  firm  name, 
firm  property  in  general,  firm  real  estate;  rights 
and  duties  of  partners  as  between  themselves; 
duty  of  good  faith,  duty  not  to  compete  or  make 
secret  profits,  duty  to  keep  accounts;  salary, 
interest. 

36 
(Commercial  Law — Continued) 


CHAPTER  28.  Rights  and  Liabilities  as  to 
Third  Persons.  Liability  of  incoming  partner  as 
to  past  indebtedness;  liability  of  outgoing  partner 
as  to  past  and  future  indebtedness;  notice  of 
withdrawal;  assumption  of  debts  by  firm  or 
certain  partner;  the  power  (real  or  apparent)  of 
each  partner  to  bind  the  firm;  particular  powers, 
to  purchase,  to  assign,  to  sell,  to  release,  to 
compromise,  to  issue  negotiable  paper,  etc. 

CHAPTER  29.  Rights  of  Firm  Creditors  Against 
the  Firm  and  its  Members.  Nature  of  partner- 
ship liability;  rights  of  firm  creditors  against  firm 
property,  against  individual  property;  rights  of 
separate  creditors  against  firm  property;  dissolu- 
tion, settlement  and  accounting,  by  operation  of 
law,  death  of  partner,  bankruptcy  of  partner; 
dissolution  by  judicial  decree,  because  of  parties' 
incapacity,  dissensions,  or  failure  of  enterprise; 
dissolution  by  sale  or  transfer  of  partner's  interest, 
by  expiration  of  time  and  agreement;  settlement 
and  accounting  after  dissolution  and  rights, 
duties  and  powers  incident  thereto. 

CORPORATIONS 

CHAPTER  30.  Nature  and  Theory  of  Incor- 
poration. Definitions,  kinds  and  classes;  creation 
and  organization;  the  source  of  corporate  existence; 
organization  under  special  acts;  under  general 
laws;  the  charter;  by-laws;  defective  and  incom- 
plete organization;  promoters  and  their  relation 
to  the  company. 

CHAPTER  31.  Stock  and  Stockholders.  Kinds 
of  stock  and  the  nature  thereof;  subscription 
to  stock;  payment  for  stock,  how  it  may  be  made; 
stock  issued  at  discount  as  "full  paid  and  non- 
assessable;" certificates;  rights  of  stockholders 
to  inspect  books,  to  bring  suit  for  or  against 

37 

(Commercial  La^ — Continued) 


corporation,  to  deal  with  corporation;  rights 
upon  dissolution;  transfer  of  stock,  right  to  and 
effect  of  transfer,  how  transfer  affected;  right  of 
transferree  against  company,  his  liabilities  to 
company  and  to  creditors  of  corporation;  forged 
certificates;  stolen  certificates. 

CHAPTER  32.  Directors.  Qualifications;  how 
elected;  acceptance  and  term  of  office;  right  of 
directors  to  deal  with  corporation;  when  director 
liable  to  corporation,  when  to  third  persons. 
Agents  and  officers;  president,  vice  president, 
secretary,  treasurer,  general  manager. 

CHAPTER  33.  The  Powers  of  Corporations. 
The  powers  inherent  in  corporate  existence;  the 
express  powers  found  in  the  charter;  what  powers 
to  be  implied  therefrom;  liberal  or  strict  con- 
struction of  charter  powers;  attempted  exercise 
of  powers  which  it  does  not  possess;  meaning 
of  term  "ultra  vires,"  statement  of  the  doctrine 
of  ultra  vires  with  its  various  applications;  power 
of  corporation  to  commit  torts  and  crimes. 

CHAPTER  34.  The  Powers  of  Corporations 
(continued).  Various  particular  powers  con- 
sidered: to  borrow,  to  mortgage,  to  issue  notes, 
bonds,  to  alienate  property,  to  purchase  shares 
of  other  corporations  or  its  own  shares,  to  acquire 
real  estate;  effect  of  ultra  vires  acts. 

CHAPTER  35.  Foreign  Corporations.  Right  of 
state  to  exclude  corporations  of  other  states  and 
countries  from  doing  business  within  its  borders; 
limitations  thereupon;  what  constitutes  doing 
business;  penalties  for  violation  of  foreign  cor- 
poration law. 

CHAPTER  36.  Combination,  Consolidation  and 
Dissolution  of  Corporations.  Right  of  corpora- 

38 
(Commercial  Law — Continued) 


tions  to  combine;  definition  of  trusts,  their  legal 
status.  Right  to  consolidate;  statutory  pro- 
visions; effect  of  consolidation.  How  corpora- 
tions dissolved;  voluntary  and  involuntary  dis- 
solution; effect  of  dissolution;  distribution  of 
assets. 

GUARANTY   AND    SURETYSHIP 

CHAPTER  37.  Nature  and  Definition  of  Con- 
tract of  Guaranty  and  of  Suretyship.  Their 
similarities  and  differences;  formation  of  the  con- 
tract, notices  to  be  given,  what  consideration 
sufficient. 

CHAPTER  38.  Rights  of  Creditors  ag  a  i  n  s  t 
Surety.  When  suit  must  be  brought;  when  rights 
waived  and  surety  released;  right  of  surety  to 
make  use  of  defenses  of  principal  debtor. 

CHAPTER  39.  Rights  of  Surety  against  Prin- 
cipal Debtor.  Subrogation  of  surety  rights  of 
creditor  when  he  pays  debt;  exoneration. 

CHAPTER  40.  Rights  of  Surety  against  Sureties. 
Contribution  of  co-sureties  upon  payment  by 
surety  of  more  than  his  share;  right  to  have  con- 
tribution; when  it  accrues,  how  lost;  rights  of  co- 
sureties to  collateral  held  by  one  or  more  of  their 
number.  Termination  of  relationship,  by  ex- 
piration of  time,  by  agreement,  by  giving  notice; 
effect  of  death  and  insanity. 


39 

(.Commercial  Law— Continued] 


Tuition 

Single  Courses 

General  Accounting  Course 
Consisting  of  forty  lessons. 

FEE 
Including  three  practice  sets  of  books 

$54.00,   payable    $9.00    with    enrollment    and    $5.00    each 

month  thereafter  until  fully  paid. 
$49.00,   payable  $19.00  with  enrollment  and  two  consecutive 

monthly  installments  of  $15.00  each. 
$45.00,   payable  in  one  cash  payment  with  enrollment. 

Advanced  Accounting  Course 

Including  THEORY  OF  ACCOUNTS,  AUDITING  and    PRAC- 
TICAL ACCOUNTING.    Consisting  of  forty  lessons. 

FEE 

$64.00,  payable    $10.00    with    enrollment    and    $6.00    each 

month  thereafter  until  fully  paid. 
$58.00,   payable  $20.00  with  enrollment  and  two  consecutive 

monthly  payments  of  $19.00  each. 
$54.00,   payable  in  one  cash  payment  with  enrollment. 

Commercial  Law  Course 
Consisting  of  forty  lessons. 

FEE 

$54.00,   payable  $9.00  with  enrollment  and  $5.00  each  month 

thereafter  until  fully  paid. 
$49.00,   payable  $19.00  with  enrollment  and  two  consecutive 

monthly  installments  of  $15.00  each. 
$45.00,   payable  in  one  cash  payment  with  enrollment. 


Combined  Courses 

General  Accounting  and  Commercial  Law  Courses 

Consisting  of  forty  lessons  in  each  course. 

FEE 
Including  three  practice  sets  of  books 

$96.00,  payable    $16.00   with    enrollment    and    $8.00    each 

month  thereafter  until  fully  paid. 
$90.00,   payable  $30.00  with  enrollment  and  two  consecutive 

monthly  installments  of  $30.00  each. 
$S4  00,  payable  in  one  cash  payment  with  enrollment. 

Advanced  Accounting  and  Commercial  Law  Courses 

Consisting  of  forty  lessons  in  each  course. 

FEE 
$106.00,  payable    $16.00   with   enrollment   and    $9.00  each 

month  until  fully  paid. 
$100.00,  payable  $35.00  with  enrollment  and  two  consecutive 

monthly  installments  of  $32.50  each. 
$94.00,  payable  in  one  cash  payment  with  enrollment. 

General  Accounting,  Advanced  Accounting  and 

Commercial  Law  Courses 
Consisting  of  forty  lessons  in  each  course. 

FEE 
Including  three  practice  sets  of  books 

$150.00,  payable  $20.00  with  enrollment  and  $10.00  each 
month  thereafter  until  fully  paid. 

$140.00,  payable  $35.00  with  enrollment  and  three  consecu- 
tive monthly  installments  of  $35.00  each. 

$130.00,  payable  in  one  cash  payment  with  enrollment. 

Tuition  for  General  and  Advanced  Accounting  Courses 
combined  is  the  same  as  for  the  combined  Advanced  Ac- 
counting and  Commercial  Law  Courses. 


Read  these  four  letters  from  Mr.  J.  E.  Malm, 
of  Johnson  &  Carey  Co.,  St.  Paul,  Minn. 


April  15,  1911. — I  am  en- 
closing herewith  answers  and 
solutions  to  Lesson  No.  4. 

There  are  a  number  of 
questions  I  would  like  to  ask 
in  regard  to  the  problems  in 
this  lesson,  especially  in  re- 
gard to  the  corporation  ac- 
counts, but  will  defer  doing 
so  until  I  receive  your  answers 
to  this  lesson,  as  in  the  past 
all  questions  about  which  I 
was  in  doubt  were  answered 
more  or  less  in  your  answers 
and  subsequent  lessons. 

April  26,  1911.— Enclosed 
please  find  answers  and  solu- 
tions to  Lesson  No.  5. 

Have  gone  over  answers 
and  solutions  to  Lesson  No. 


4,  comparing  them  with  those 
which  I  sent  in,  and  now  find 
I  do  not  need  to  ask  any 
questions  regarding  same, 
everything  being  made  clear. 

May  6,  1911.— Enclosed 
please  find  solutions  and 
answers  to  Lesson  No.  6. 

After  papers  were  returned 
pertaining  to  Lesson  No.  5, 
everything  was  made  clear. 

June  10,  1911. — Enclosed 
you  will  please  find  Solutions 
and  Answers  to  Lesson  No.  9. 

All  questions  in  previous 
lesson  thoroughly  understood. 
Also  found  them  very  inter- 
esting. 


Some  Letters  Worth  Reading 


EDWARD  R.  BURT,  Public 
Accountant,  Chicago — It  has 
occured  to  me  many  times 
during  the  past  few  weeks, 
that  a  letter  extending  to  you 
my  appreciation  of  your 
most  valuable  course  in  ac- 
counting should  be  forth- 
coming. 

I  have,  during  the  time  I 
have  spent  as  an  Auditor, 
read  many  of  the  leading 
works  on  this  subject, 
very  often  to  find  myself 
more  perplexed  than  ever  as 
to  a  correct  and  practical 
method  of  dealing  with  prob- 
lems, such  as  are  bound  to 


confront  those  so  employed. 
After  having  almost  com- 
pleted your  course,  I  feel  that 
I  can  now  honestly  say,  that 
in  my  estimation,  it  is  the 
clearest,  and  most  practical 
work  of  its  kind  thus  far 
produced;  not  only  in  its 
words  and  phrases,  but  in  the 
manner  in  which  it  deals  with 
conditions  parallel  with  those 
the  Accountant  meets  in 
daily  practice. 

I  assure  you  of  my  hearty 
appreciation  of  your  efforts, 
and  hope  that  the  success  to 
which  you  are  entitled,  will 
be  yours. 


T.  T.  SULLIVAN,  The  West- 
ern Foundry  Co.,  Chicago. — 
Having  successfully  passed 
the  C.  P.  A.  examination,  I 
want  to  thank  you  for  your 
great  help  which  I  feel  was 
the  chief  factor  in  enabling 
me  to  pass.  I  am  all  the 
more  appreciative,  consider- 
ing the  fact  that  I  already 
had  taken  a  course  in  account- 
ing from  one  of  the  prominent 
correspondence  schools  and 
had  failed  to  pass  the  exami- 
nation. 

As  I  was  of  the  opinion  that 
with  the  proper  kind  of  in- 
struction, I  could  still  become 
a  certified  public  accountant, 
I  decided  to  enter  your  class. 
Your  clear  and  forceful  ex- 
position of  accounting  princi- 
ples, and  the  application  of 
them  to  business  and  account- 
ing subjects  were  of  great 
value  to  me. 

The  criticisms  of  the  an- 
swers to  the  problems  in  the 
course  were  the  means  of  still 
further  developing  and  em- 
phasizing the  underlying 
principles.  In  my  opinion 
the  great  value  of  the  course 
that  you  are  giving,  is  the 
combination  of  the  scientific 
with  the  practical  treatment 
of  the  subjects  discussed. 

John  R.  AFFLECK,  Beaver 
Falls,  Pa. — Your  explana- 
tions of  the  course  to  follow, 
with  errors  in  old  inventory, 
were  very  clear  to  me  and  in 
fact  put  another  feature  of 
bookkeeping  into  my  con- 
sideration. 

It  was  as  good  as  a  lesson 
and  I  thank  you  for  it. 


JOEL  HUNTER,  Chairman  of 
Georgia  State  Board,  .Exam- 
iners of  Public  Accountants, 
Atlanta,  Ga. — I  think  your 
idea  as  to  showing  students 
why  their  answers  are  wrong 
is  an  excellent  one  and  believe 
it  will  win  a  good  number  to 
your  School  of  Accountancy. 
I  have  long  wished  that  I 
could  find  such  a  School 
worthy  of  my  strong  endorse- 
ment to  the  young  men  and 
boys  of  the  Southeastern 
States. 

MAURICE  S.  KUHNS,  Certi- 
fied Public  Accountant — No 
greater  evidence  of  my  ap- 
preciation of  your  work  is 
necessary  than  to  say  that 
I  am  grateful  for  what  it  is 
doing  for  my  son  Richard. 

It  is  with  pleasure  that  I 
unreservedly  endorse  your 
School  and  the  excellent 
Courses  you  have  arranged 
for  Students. 

C.  M.  WILLIAMS,  C.  M. 
Williams  &  Co.,  Certified 
Public  Accountants,  Seattle, 
Wash. — I  assure  you  that  I 
shall  not  hesitate  to  talk  up 
the  good  work  in  your  school, 
whenever  the  opportunity 
presents  itself. 

H.  M.  TEMPLE,  Temple, 
Webb  &  Co.,  Certified  Public 
Accountants,  St.  Paul,  Minn. 
— Your  long  and  practical 
experience  in  the  accounting 
field  and  your  excellent  stand- 
ing with  the  Professional 
Accountants  everywhere,  is  a 
guarantee  to  your  prospective 
students  that  the  service 
rendered  by  your  school  and 
yourself  will  be  the  very  best. 


43 


Personnel  of  Faculty 

Seymour  Walton,  A.  B.,  C.  P.  A.,  Dean,  is  an 
honor  graduate  of  Williams  College  and  all  his 
life  has  been  a  student  of  and  writer  on  business 
and  accounting  subjects.  He  is  recognized  as  an 
authority  on  Accounting  and  as  the  foremost 
educator  in  accountancy.  He  organized  one  of 
the  most  successful  banks  in  Chicago  and  is  one 
of  the  leading  Certified  Public  Accountants  in  the 
United  States. 

He  is  the  senior  member  of  the  well-known  firm 
of  practicing  accountants,  Walton,  Joplin,  Langer 
&  Co.,  and  both  he  and  Mr.  J.  Porter  Joplin  have 
been  president  of  the  Illinois  Society  of  Certified 
Public  Accountants. 

His  articles  in  the  "Auditor,"  the  "Journal  of 
Accountancy,"  and  other  publications,  have  given 
him  a  national  reputation  as  a  practical  thinker 
and  writer  who  knows  how  to  express  his  ideas  in 
a  clear  and  forceful  manner. 

Two  universities  have  secured  his  services  as  a 
professor  and  lecturer  on  Theory,  Auditing  and 
Practice  of  Accounting.  This  valuable  teaching 
experience,  together  with  the  great  advantage 
that  comes  from  twenty  years  of  active  practice  as 
a  public  accountant  gives  him  the  two  requisites 
absolutely  required  of  an  educator  in  accountancy 
— accounting  experience,  to  make  his  teaching 
practical  and  teaching  experience  to  successfully 
impart  this  knowledge. 

Charles  H.  Langer,  C.  P.  A.,  has  been  actively 
engaged  in  the  accounting  profession  for  ten  years 
and  is  a  member  of  the  firm  of  Walton,  Joplin, 
Langer  &  Co.,  practicing  accountants. 

44 


His  experience  in  preparing  for  and  taking  the 
C.  P.  A.  examination  and  the  knowledge  of  what 
is  required  of  the  candidate,  is  of  inestimable  value 
in  the  preparation  of  courses  and  the  coaching  of 
students  for  the  C.  P.  A.  examinations. 

In  addition  to  his  practical  experience  as  a 
Certified  Public  Accountant,  Mr.  Langer  has  had 
a  number  of  years  of  teaching  experience,  as  a 
lecturer  in  accounting  in  one  of  the  largest  uni- 
versities where  he  has  charge  of  the  General 
Accounting  Courses. 

In  the  conducting  of  these  classes  he  has, 
through  close  attention  to  the  needs  of  the  stu- 
dent and  the  elimination  of  all  unessential  matter, 
evolved  a  series  of  lectures  and  practice  sets  of 
books  in  General  Accounting  that  is  considered 
by  many  Public  Accountants  to  be  the  best  avail- 
able course  of  instruction  to  be  had  in  this  subject. 

Alfred  W.  Bays,  B.  S.,  LL.  B.,  is  head  of  the 
Department  of  Law  and  is  a  graduate  of  Knox 
College  and  the  Northwestern  University  Law 
School.  He  is  in  active  practice  in  the  legal  pro- 
fession in  Chicago  and  is  a  member  of  the  firm  of 
Thompson  &  Bays,  attorneys.  He  is  a  professor 
and  lecturer  on  law  in  two  university  schools. 
His  years  of  practical  and  teaching  experience 
eminently  qualify  him  for  this  work. 


45 


Sample  of  Diploma  of  Walton  School  of  Accountancy 


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UCSB   LIBRARY 


WALTON 
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